Loan Reviews

Best Payday Loan Alternatives for Bad Credit 2020

EPF Last Update: October 25, 2020

The gap between payday loans and personal loans is huge. Alternative payday loans can be categorized as everything that is between personal loans and payday loans. The amount that they offer is about up to $5,000, the APR is typically between 35.99% to 400%. Alternative payday loans approve people with really bad credit. Most of them even don’t check people’s credit history. However, they check your income, debt to income ratio, workplace, and etc. Be careful, because these loans are still expensive and there is a risk of the debt cycle. However, they can save people who are with really bad credit and no other options than payday loans.

In this guide, we will explain everything about them. However, before reading the article, we highly recommend that you watch our video on personal loans. There we explain how people with bad credit can get approved on a personal loan.

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Best Alternative Payday Loans 2020

Loan CompanyMin Credit ScoreAPRAmount
OppLoans099% – 199%$500 – $5,000
ZippyLoan0Vary$100 – $15,000
LendJetFunds0Vary$100 – $10,000
FundsJoy0Vary$100 – $5,000
WhiteRockLoans0Vary$100 – $5,000
LendUp030% – 1252%$100 – $1,000
RiseCredit060% – 299%$500 – $5,000
NetCredit034% – 155%$1,000 – $10,000
PossibleFinance0151% – 230%Up to $2,000

For the latest updates, please check our marketplace.

What are Alternative Payday Loans?

When it comes to bad credit, people often end up getting payday loans. Do you know that there is a totally new type of loan company called alternative payday loans? Many people don’t even know about them and skip them …

If we have to categorize online loans, there are two main categories of loans are online personal loans and online payday loans. Personal loans come with an APR of less than 35.99% and an amount of up to $100,000. Payday loans typically come with an APR of 400% and an amount of up to $1,000.

If you have bad credit, your chances to qualify for a personal loan with an APR of up to 35.99% are limited. Many people who don’t qualify for online personal loans end up with payday loans, which are predatory. Don’t do this!

The lending market is much more flexible these days. Alternative payday loans have entered the stage.

Although there is no official definition of them, we typically define them as loans between personal loans and payday loans.

In brief, these are online loans that are more expensive than personal loans and offer less money, but getting approved for them is super easy.

There is still insufficient information on this topic and we at ElitePersonalFinance decided to dig deep into these companies and explain everything about them. Are they a good option? Are they legit, or maybe predatory like payday loans? When to use them and when not? We will answer all of the questions and explain everything in detail, but before that, let us give you an overview of all options to borrow money if you have bad credit. You are probably reading this article because you have bad credit and want to learn more about all the options, right?

Online Unsecured Personal Loans. If you qualify, you can get up to $100,000 with an APR of up to 35.99%.

Online Secured Personal Loans. Secured loans are like regular personal loans, but the lender requires you to put something as collateral.

Alternative Payday Loans. We will explain more about them carefully later in this article.

Credit Cards for Bad Credit.

Credit Unions and Banks. Most banks will say no to bad credit. However, credit unions try to evaluate more factors like your ability to pay off the loan, but they still have some requirements, which are not too strict. Still, if you don’t meet them, you won’t be approved.

Other options. We will discuss these later.


Loan amounts$500 – $5,000
Typical APR59% – 199%
Min Credit Score0
Time to funding1 Day
Loan terms9 – 36 months
Origination feeN/A
Debt-to-income ratioN/A

OppLoans is a perfect example of alternative payday loans. The amount that they offer is up to $5,000, but in some states, it can be less, according to the law. OppLoans APR is 99% to 199%.

OppLoans Currently Offers Installment Loans in:
New Mexico
South Carolina

OppLoans Currently Offers Line of Credit Product in:

Loans Originated and Funded by FinWise Bank:
District of Columbia
North Dakota
Rhode Island
South Dakota


  • OppLoans won’t check your credit score.
  • Lower APR than traditional payday loans.
  • Higher loan amount than payday loans.
  • Loans with instant approval.


  • More expensive than personal loans.
  • Lower loan amount than personal loans.
  • Not available in many states because of law regulation.

Best for: Really Bad Credit


Loan amounts$500 – $10,000
Typical APR5.99% – 35.99%
Min Credit Score0
Time to funding1 Day
Loan terms3 – 36 months
Origination feeN/A
Debt-to-income ratioN/A
Check rates

If you register with BadCreditLoans now, there is a chance to get personal loan offers before you even read this article, even if you have really bad credit. Bad credit, instant approval, no payday loans. This is true, really! BadCreditLoans is a huge marketplace for which offer loans to people with really bad credit. And they are NOT an alternative payday loan company. They offer only personal loans with an APR of up to 35.99%. People with bad credit typically receive about $500 – $3,000, while their amount is $10,000. If you are in a better financial situation and have a higher credit score (e.g. bad to fair), you can expect a higher amount.


  • Instant approval for bad credit loans.
  • Not a payday loan company.
  • Competitive APR of typically 15% – 35.99% for really bad credit, which is much better than payday loans with an APR of 400%.
  • Amount of $10,000.
  • Huge lending network.
  • Free to register and no obligation to accept any offer.
  • The minimum credit score required is 0.


  • Some people in a really bad financial situation don’t receive offers.
  • People with really bad credit can’t qualify for their highest amount of $10,000. Instead, they can get about $500 to $3,000.
  • Not available in all states.

Best for: Really Bad Credit


Loan amounts$1,000 – $35,000
Typical APR5.99% – 35.99%
Min Credit Score580
Time to funding1 Day
Loan terms90 days – 72 months
Origination fee1 – 5%
Debt-to-income ratioN/A
Check rates

PersonalLoans is a great example of a personal loan company that works with people with bad credit. PersonalLoans have requirements that you have to meet, but they are not too strict.


  • Low credit score requirements of 580.
  • Low income requirement of $1,000.
  • Bad credit is ok.
  • The highest amount allowed is $35,000.
  • Available in many states.


  • People with really bad credit can’t apply.
  • You can’t have an account with a late payment for longer than 60 days or a recent bankruptcy.
  • You can’t have any recent charge-offs or late payments.

Best for: Bad Credit

If you want to find more loans, please visit our list of all loans here.

What are Alternative Online Payday Loans?

A personal loan comes with an APR of up to 35.99% and an amount of up to $100,000. A payday loan comes with an APR of 400% and most often the amount is up to $1,000. Although this is not set in stone, it is a standard in the lending business that most companies apply. The gap between these two types of companies is huge but, luckily, filled by – alternative payday loans.

We can define alternative payday loans as everything that is between personal and payday loans. Typically, their ARP is 35.99% to 400%. The amount that they offer is about $1,000 to $5,000. As you can see, the range is obviously broad, so the only way that we can define these companies is to say that they are something in between the other two types. But they play a different game, so you’ll find offers that are totally different.

The alternative lending business is on the grow. A few years ago, there were not so many companies like these. The lending market is now much more flexible and companies like these have emerged. However, there is a lack of information on this topic and no guides that cover such companies in detail.

How do They Work?

They make the application process easy for people. They won’t check your credit score, although they can scan your bank information to get an idea of your income flow. They have a minimum credit score requirement of 0, but the average is about 500. Bad credit loans can be instantly approved.

Although they cross the border of traditional online personal loans, they do their best not to be marked as predatory. They offer education and help people to increase their credit score. They stimulate people who work on increasing their credit score by allowing them to pay their installments regularly at a lower APR. They report your payment history to credit bureaus. If you can’t make the payment, they allow you to skip it or avoid a late penalty fee.


  • Instant approval for bad credit loans.
  • Cheaper than payday loans.
  • Most of them don’t check your credit score.
  • Much more flexibility.
  • They are short-term, but most of them offer installment payments.
  • You can skip payments in some cases with a click of a button and with no late penalty fees.
  • They offer help in building your credit score and offer many benefits if you work to achieve that goal.
  • If you pay on time and build credit, they can offer you a lower ARP within the same loan period or next time when you apply for their loan.
  • Extended payment time on lump-sum loans without late fees, based on the limit in your state.
  • They will report your successful payment plan to credit bureaus, which will increase your credit score.
  • They will allow you to make changes to the loan payment plan.
  • Fewer additional and hidden fees.


  • Much more expensive than traditional personal loans.
  • They don’t offer loans higher than $5,000. Also, not all people can apply for this amount.
  • They operate in fewer states. Different states have different state regulations. There are states that regulate online payday loans, other states that make them completely illegal, and finally, those that don’t regulate loans at all. That is why you will see these companies only in some states, and in some cases, you will see different offers because of the laws. For example, in one state they can offer $5,000, but because of law regulations, the same company can offer only up to $1,000 in another state.

Note that these advantages and disadvantages only give you an idea of how these companies work. Not all companies have the same policies.

Best for: people with really bad credit who don’t have other options.

When to Use Alternative Payday Loans and When not?

If you ask us whether we recommend these loans, the answer will be both yes and no. Our advice is to use them only if you really have no options other than to go and get a payday loan. These companies are better than traditional payday loans but they are still an expensive option. Here is a quick guide on what to do before you consider alternative payday loans.

  • Shop around for online personal loans

There are so many companies that help people with bad credit. However, not all people can qualify because there are some requirements. If you can’t get a loan there, try to talk with the lender or lower the amount.

  • Try credit unions

Credit unions are more likely to check your real ability to pay the amount instead of considering only your credit score. However, on most websites, you will find that they similar to alternative or payday loans. This is not always true, because credit unions have some requirements that prevent people with bad or really bad credit from getting approved.

  • Secured personal loans or cosigner attached

These can be great options because they will increase your chances to get approved, but the downside is that you risk the collateral. If you are sure that you can pay the amount on time, you will receive great offers even with bad credit, but if you can’t pay, this is a great risk. Use secured online loans only if you are sure that you can pay the amount on time. If not, don’t take your chances.

  • Try credit cards for bad credit

Credit cards for bad credit can be secured and unsecured. If you can apply for an unsecured card, get it and you will instantly use the amount on it. Secured credit cards require you to pay a security deposit which is typically the amount equivalent to the limit on the card. So, you don’t get real money. However, there are some credit cards that will allow you to pay an amount lower than the security deposit, which means that you can use this difference between the limit on the card and security deposit. To get a real idea of the amount that you will actually get from secured credit cards, you also have to consider all fees like the annual fee that can be deducted from your card limit instantly! Here we list the best credit cards for bad credit:

  • Work on your credit score

If you can wait for some time and increase your credit score, then do it before you apply for a personal loan. But if you don’t have time to wait, then this won’t work for you, because increasing your credit score is a slow process although many sites say it is easy. That is simply not true.

If none of these options work for you, then instead of getting a payday loan, go and get an alternative online payday loan.

As we said, this is a huge but relatively new field in the lending business. The lending market is changing and this is a process that will continue. We at ElitePersonalFinance carefully monitor this process and will always report to you the best options. But in brief, the overall situation looks good. It seems that things in the loan business are getting better and better.

There will be more and more new companies like these with even more attractive offers!

Lenders will become more willing to lend you money!

You can expect more options and a higher approval success!

You can expect lower fees and more competitive offers!

What other Big Sites and Financial Experts Say about These Companies?

A few years ago, none of the big and legit personal finance websites would recommend anything with an APR over 35.99%. Everything over this amount was considered predatory. And that was almost true because if people didn’t qualify for online personal loans, the next step was a payday loan with an average APR of 400%. Now, with this totally new field of alternative payday loans, we see that these same websites are starting slightly but carefully to recommend them.

Financial experts widely trusted by people won’t really promote these loans, but they will still mention them. Some experts won’t tell that they are a great alternative to payday loans. The other will recommend them but like the end option. Others say that they are more similar to predatory loans but better than payday loans. Others yet warn people that there is a possibility of a debt cycle and recommend using them carefully. And there are those who recommend them only as the last chance to avoid payday loans.

In brief, these companies will continue to participate in the loan marketplace, but they are not the best option.

And we at ElitePersonalFinance, a site that shows great respect for our visitors, have a very similar opinion.

Be careful with these loans and use them only as a final resort. This type of loan is expensive, so make sure that you can repay it on time. Read the contract carefully.

What if I Can’t Apply for These Loans and have to Get a Payday Loan or Auto Title Loan?

Now, it would be easy to list the best payday loans online but we have decided not to do it. And we recommend that you don’t look for them. There are a number of complaints from the people who took payday loans and we can’t risk being responsible for financial troubles that can happen to you.

If you really want to get a payday loan, there are other options for you. There are other websites that list them, we don’t.

You can type:

  • Best payday loans.
  • Online payday loans.
  • Payday loans instant approval.
  • Payday loans near me.
  • Payday loans + your location.
  • Payday loans for bad credit no credit requirements instant approval.

And you will find them very easily!

Few words about payday loans …

Payday loans typically say things like no credit no problem, instant approval, and fast money.

By definition, these are short-term loans paid in one time, on the next day when you get your salary. And this looks alright. However, these loans have an APR of about 400%. If you get $300, you will have to pay $345 in 2 weeks, CFPB states. That’s a really high price.

Also, there is a risk of getting into a debt cycle. That is exactly what these unscrupulous lenders want!

People who can’t repay the money on time have to pay only a $30 fee for every $100 each month, which doesn’t lower the principal amount of the loan. And then, this process repeats until you pay the full amount. This is also known as a debt cycle. Unscrupulous lenders use this type of lending to target people who can’t repay their debts on time, thus earning a lot of money from them.

With auto title loans, things are almost the same. The difference is that you put your car as collateral and for that, you receive a slightly lower APT ‒ about 300%. But there is a bonus. Not only a debt cycle and expensive loans, but you can also lose your car fast and easily! According to a study, 20% of Americans lose their cars to auto title loans.

Get online payday loans only if you are sure that you will repay the amount on time!

You can also search for installment payday loans. After the big changes in the personal loan business and some obvious improvements, the payday loan industry introduced installment payday loans.

Recently, more lenders have started to offer installment payday loans, which are slightly better because you can choose your payment plan and avoid a debt cycle. However, these are still very expensive and predatory!


Alternative payday loans are much better than payday loans and they do help people. The competition between companies will make room for improvement and some of them will build new companies like them. But relying only on the idea that this competition will stabilize the situation is discouraging. There is a need for a new standard that these companies will follow. If this happens, we believe that these companies will be much better and safer for people searching for loans.

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